ICE Mortgage Technology, a neutral provider of a robust end-to-end mortgage platform and part of Intercontinental Exchange, Inc. (NYSE: ICE), today released the October 2025 ICE First Look at mortgage delinquency, foreclosure and prepayment trends.
“Softening mortgage rates expanded the pool of refinance candidates in October, pushing prepayments to their highest level in three and a half years,” said Andy Walden, Head of Mortgage and Housing Market Research at ICE. “This trend was largely driven by people who purchased homes at elevated rates in recent years seizing the opportunity to lower their monthly payments.”
“Overall mortgage health remains solid, with continued improvement in delinquency rates across all stages,” continued Walden. “While foreclosure activity has ticked up, levels remain historically low. This uptick is driven by a rise in FHA foreclosures along with the resumption in VA foreclosures following last year's moratorium."
Key takeaways from this month’s findings include:
- Delinquencies improved: The national delinquency rate fell by 7 basis points (bps) in October to 3.34%. This is down 11 bps from the same time last year and 53 bps below the October 2019 pre-pandemic benchmark.
- Broad strength in delinquency rates: Performance improved across the board, with both early-stage (30-day) and late-stage (90+ day) delinquencies declining during the month.
- Prepayments reached a multi-year high: The single month mortality (SMM) rate, which tracks prepayments, rose by 27 bps in October to 1.01%. This marks the highest level in 3.5 years and an increase of 16 bps from last year when interest rates were at similar levels.
- Foreclosure activity trending upward: Although October foreclosure starts slowed by 9.8% from the prior month, the overall trend continues to rise. Foreclosure inventory is up by 37,000 (+19%) year over year, and foreclosure sales have increased by 1,900 (+32%) from last year's levels.
- Government loans driving foreclosure growth: While foreclosure activity remains muted by historical standards, the number of loans in active foreclosure hit its highest level since early 2023, driven by a notable rise in FHA foreclosures (+50% YoY) along with a resumption of VA activity following last year's moratorium.
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Data as of October 31, 2025 |
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Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 3.34% |
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Month-over-month change: -2.17% |
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Year-over-year change: -3.13% |
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Total U.S. foreclosure pre-sale inventory rate: 0.41% |
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Month-over-month change: 1.65% |
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Year-over-year change: 17.72% |
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Total U.S. foreclosure starts: 38,000 |
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Month-over-month change -9.84% |
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Year-over-year change: 29.04% |
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Monthly prepayment rate (SMM): 1.01% |
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Month-over-month change: 36.84% |
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Year-over-year change: 19.29% |
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Foreclosure sales: 7,700 |
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Month-over-month change: 8.04% |
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Year-over-year change: 32.39% |
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Number of properties that are 30 or more days past due, but not in foreclosure: 1,841,000 |
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Month-over-month change: -36,000 |
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Year-over-year change: -28,000 |
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Number of properties that are 90 or more days past due, but not in foreclosure: 476,000 |
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Month-over-month change: -1,000 |
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Year-over-year change: -3,000 |
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Number of properties in foreclosure pre-sale inventory: 226,000 |
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Month-over-month change: 4,000 |
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Year-over-year change: 37,000 |
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Number of properties that are 30 or more days past due or in foreclosure: 2,067,000 |
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Month-over-month change: -32,000 |
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Year-over-year change: 9,000 |
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Top 5 States by Non-Current* Percentage |
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Louisiana: |
7.84% |
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Mississippi: |
7.76% |
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Alabama: |
5.78% |
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Arkansas: |
5.46% |
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Indiana: |
5.41% |
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Bottom 5 States by Non-Current* Percentage |
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California: |
2.17% |
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Colorado: |
2.12% |
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Montana: |
2.06% |
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Washington: |
2.00% |
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Idaho: |
1.96% |
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Top 5 States by 90+ Days Delinquent Percentage |
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Mississippi: |
2.07% |
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Louisiana: |
1.93% |
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Alabama: |
1.53% |
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Arkansas: |
1.40% |
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Indiana: |
1.31% |
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Top 5 States by 12-Month Change in Non-Current* Percentage |
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South Carolina: |
-9.25% |
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Florida: |
-9.01% |
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Vermont: |
-8.77% |
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New York: |
-7.57% |
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New Hampshire: |
-6.80% |
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Bottom 5 States by 12-Month Change in Non-Current* Percentage |
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Maryland: |
11.50% |
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Utah: |
8.36% |
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Alaska: |
6.47% |
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District of Colombia: |
6.13% |
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Arizona: |
5.51% |
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*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.
Notes:
- Totals are extrapolated based on ICE’s loan-level database of mortgage assets.
- All whole numbers are rounded to the nearest thousand, except foreclosure starts and sales, which are rounded to the nearest hundred.
The company will provide a more in-depth review of this data in its monthly Mortgage Monitor report, which includes an analysis of data supplemented by detailed charts and graphs that reflect trend and point-in-time observations. The Mortgage Monitor report will be available online at https://www.icemortgagetechnology.com/resources/data-reports.
For more information about gaining access to ICE’s loan-level database, please send an email to ICE-MortgageMonitor@ice.com.
